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Jefferson County, Louisiana Homes For Sale. Find a Wholesale Bank-Owned REO in Jefferson County, Louisiana, LA:Featured Topic: REOREO's are non performing assets that burden the books of banks as they are not set up to handle real estate. Banks do not want to see a lot of proprietary disclosures with REOs; they are exempt from the California Seller’s Transfer Disclosure Statement (TDS-14) and if there are real estate agents involved, either representing you or the bank, those agents are required to provide you their disclosure statements. Many investors use a private hard money lender to finance their cash flow REO purchases. There are multiple sources of funding currently available to investors purchasing REO's in Southern California. It is critical for REO buyers to communicate competence, integrity and ability to close escrow to the listing REO agent. Many REO investors are currently buying bad deals by basing their offers solely on the fact that the house looks cheap. This creates bad experiences that stop them from continuing their investing careers. Putting and or assignee on a REO purchase contract shows a weak buyer and makes the bank think the buyer isn't sure where their funds are coming from. A property that is still in foreclosure does not yet belong to the bank and the homeowner must be engaged. An REO purchase does not involve the homeowner. REOs with swimming pools typically have empty or half empty pools that will require repair to the plaster, tile, electrical and pump equipment. This along with a smaller buyer group, increased liability in a hold situation and higher insurance will keep many investors from bidding on pool homes Discussing cash flow numbers and formulas with you CPA or real estate lawyer is a good idea to fully understand the long term tax implications of a buy, rent and hold REO deal. Fannie Mae uses a state-specific real estate purchase contract and a real estate purchase addendum for their REO properties. If there is anything in the document you don't understand or aren't comfortable with, you may want to contact a real estate attorney, the real estate sales professional who has listed the property, or any real estate professional of your choice to review these documents with you. There are some credit issues that REO must allow for a certain time to pass before you can qualify for a FHA loan. They are follows: Two years from the date of discharge for a Bankruptcy and Three years from the date of Foreclosure. If the bank won't budge and you receive an offer rejection, wait another 7 to 30 days and then resubmit your original offer, with the original date crossed off and your new date inserted. Many are in fine neighborhoods and offer outstanding values. And while some REO homes do qualify as handyman specials, many are in very good condition. Many investors shy away from REO properties or HUD homes because they feel they have less negotiating power or simply lack the capital to make aggressive offers and play along with the rules that REO lenders stipulate. While REO investors are underbidding on many foreclosure properties, Christopher Thornberg, a principal at Beacon Economics in Los Angeles, said that interest is coming from “vulture funds” with millions of dollars to spend on distress sales. Thornberg said Wall Street vulture funds are amassing war chests in preparation for a new cycle of opportunities in loans or bonds of struggling financial companies or homebuilders. In some communities code enforcement is looking to thin the herd of run down section 8 rentals by imposing heavy fines on their landlord owners. This is something to consider when looking into buying an REO homes as rentals. REO: this is an acronym for Real Estate Owned, and this used to be called the bank department that managed the properties the bank had reacquired through a foreclosure process. The process starts with the notice of default filed and, in California, ends with a trustee's sale back to the lender (if no one else buys the property on the county courthouse steps). There are three phases of a foreclosure; pre-foreclosure/short sale, auction, and REO (real estate owned) The REO option offers many more benefits and less stress than the foreclosure auction. When a bank takes back a property they then have the property listed as a salable asset on their books. The role of a bank is to maximize the wealth for it's shareholders. |
